9911796707
TMI Blog2006 (3) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-deposit of the entire amount of duty and penalty. 2. The brief facts of the case are that the appellant is engaged in the manufacture of polythene insulated jelly filled telephone cable falling under Chapter sub-heading 8544 of Central Excise Tariff Act, 1985. They availed Modvat credit on the inputs and capital goods used in the manufacture of its final product for which declarations under Rule 57T were duly filed. A show cause notice dated 18-8-1999 was issued seeking to disallow Modvat credit on twister with control panel, contractor, capacitor, cable test meter, testing for telecom cable, measuring systems availed during the period of August 1994 to December 1995, on the ground that the said goods were not used directly for produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in fact the Larger Bench decision of the Tribunal in the case of Jawahar Mills Ltd. held that it is incorrect to construe the expression used for processing of any goods for the manufacture of the final product as synonymous with used for bringing about any change in any substance for the manufacture of the final product and that even motor vehicles, locomotives, cane baskets, laboratory filling, electrical humidifiers, exhaust fans and similar equipment would be eligible to credit as capital goods, as they are used for processing of goods used for the manufacture of the final product. 6. It was further submitted that in the instant case, the credit has been denied on cable test meter and testing for telecom cable which were use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch decision in Jawahar Mills case the items should have been used for manufacture of finished products and such testing equipments cannot be stated to have been used for the manufacture of final product. 10. I have considered the submission made by both parties. I find that there is nothing in the Jawahar Mills case which directly says that the testing equipments will not be eligible for Modvat credit on capital goods. The decision very clearly says that any goods which are used for producing or processing of any goods or bringing out any change or manufacture of final product will be entitled for the benefit of Modvat credit. On the other hand there has been a catena of the Tribunal s decision holding that measuring/testing equipments w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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